KPIs
RevPAR
RevPAR (revenue per available room) is room revenue divided by the number of available rooms for a period; it combines rate and occupancy in a single figure.
1 min read · Updated: September 28, 2026
RevPAR is the standard way to compare hotel performance because it accounts for both price and empty rooms. A hotel with a high average rate but low occupancy can have a lower RevPAR than a cheaper competitor that sells almost every room.
- RevPAR = room revenue / available room nights
- RevPAR = ADR × occupancy
How it works in practice
Example: a hotel has 80 rooms. On one night it sells 60 rooms for a total of £7,200. ADR = £7,200 / 60 = £120, occupancy = 60 / 80 = 75%, RevPAR = £7,200 / 80 = £90 (£120 × 0.75). Selling 70 rooms at £110 would give a RevPAR of £96.25 despite the lower rate.
Only room revenue counts towards RevPAR. Revenue from other services is captured in TRevPAR.
How technology helps
RevPAR is calculated in the PMS or revenue management system. hotelspot does not calculate RevPAR, but it helps grow ancillary revenue, which lifts TRevPAR. Service sales reports are in the G-commerce Manager.
Frequently asked questions
- How do you calculate RevPAR?
- Divide room revenue by available room nights, or multiply ADR by occupancy. For example, an ADR of £120 at 75% occupancy gives a RevPAR of £90.
- What is the difference between RevPAR and ADR?
- ADR is the average rate of sold rooms, while RevPAR spreads room revenue across all available rooms, including empty ones.
